The advantage of investing overseas in this way is that you don't have to go to the bank to exchange foreign exchange. It belongs to holding US dollar (foreign currency) assets in disguise, and it is also a strategy of both offensive and defensive. The purchase threshold is low, there are a wide range of overseas markets and investment themes to choose from, and there is no limit on the amount of foreign exchange purchased by individuals. Due to the expectation of RMB depreciation, QDII funds denominated in US dollars can also enjoy the benefits brought by the appreciation of the US dollar.
It should be noted that the disadvantage is that the risk of exchange rate fluctuation needs to be paid attention to when investing in QDII dollar share. There may be some differences between QDII RMB share and USD share in the same investment period. If the dollar depreciates against RMB, exchange rate losses will also dilute investors' investment income. Moreover, management fees and custody fees are high, and cross-market management costs are high.
When buying QDII funds, investors need to know whether the target market or industry has long-term potential, grasp the investment theme of the product, and make clear the investment prospect and overall income expectation of the product.